Hello friends,
I have a few questions the answers to which would help me decide what to do about my existing SEP-IRA and possible backdoor Roth.
I have part-time employees with employment duration under 1000 hours last year plus maximum income per year of under $5000.
1) Using the available employee service and pay requirements, am I allowed to open a Solo-401k?
2) If answer above is no, then I think that concludes the matter. And the other questions may be ignored.
However, if answer is yes, can I open it with $0 and not contribute to it at all? Do I still have to make contributions for employees even if I don't contribute at all now or in the future?
3) Is a rollover from a SEP-IRA to the Solo-401k considered an employer contribution that must be matched for the employees as well?
Thanks for any information. I am looking for ways to get rid of my SEP-IRA and Traditional IRA so that I can do backdoor Roth now and in the future.
I have a few questions the answers to which would help me decide what to do about my existing SEP-IRA and possible backdoor Roth.
I have part-time employees with employment duration under 1000 hours last year plus maximum income per year of under $5000.
1) Using the available employee service and pay requirements, am I allowed to open a Solo-401k?
2) If answer above is no, then I think that concludes the matter. And the other questions may be ignored.
However, if answer is yes, can I open it with $0 and not contribute to it at all? Do I still have to make contributions for employees even if I don't contribute at all now or in the future?
3) Is a rollover from a SEP-IRA to the Solo-401k considered an employer contribution that must be matched for the employees as well?
Thanks for any information. I am looking for ways to get rid of my SEP-IRA and Traditional IRA so that I can do backdoor Roth now and in the future.
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